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The Eric Stewart Group Blog

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contingency

"Contingency" - What does contingency mean for real estate?

By: Eric Stewart
January 17th, 2019

What does the word “contingency” mean in sales, especially in real estate? Contingency is a simple word from Latin roots meaning to hold together. Wait, if it means to hold together, why is it known as a way out of a contract? Well, consider buying real estate without any contingencies. Would you purchase a home if you couldn’t inspect it, do an appraisal, or check for termites? Or have a loan contingency if you need to get a mortgage? No, hopefully you wouldn’t. You need the contingency to hold the contract together even though, if a contingency isn’t fulfilled, the contract will die.

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